Meezan Bank registers healthy growth of 65% YoY in 1HCY20

MG News | August 18, 2020 at 10:31 AM GMT+05:00

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August 18, 2020 (MLN): Meezan Bank Limited has unveiled its financial results for the 1HCY20 ended June 30, 2020. As per results, the bank has reported its net profits of Rs 11.58 billion (EPS: Rs 8.97), showing significant growth of 65.38 % against net profits of Rs 7 billion (EPS: Rs 5.42) of the same period last year.

The robust growth in earnings was attributable to higher Net Spread earned (56% YoY) on the back of volumetric growth in assets driven by Power/Ijarah Sukuk. Moreover, a sharp rate cut did play to the bank’s advantage, AKD research mentioned.

During the period under review, Non-Funded Income (NFI) increased by only 8.6% YoY on the back of higher foreign exchange income, up by 21% YoY along with capital gains of Rs 965 million.

According to a report by EFG Hermes, Fee and commission income took a hit owing to the COVID-19 outbreak, however, a sharp improvement in NIMs offset weaker fee income.

Meanwhile, the overall other expenses surged by 26% on the back of higher operating expenses and workers' welfare funds.

Consolidated Profit and Loss Account for the half-year ended June 30, 2020 ('000 Rupees)
	Jun-20	Jun-19	% Change
Profit/return earned on Islamic financing and related assets. Investments and placements	57,832,671	40,011,089	44.54%
Profits on deposits and other dues expensed	25,486,719	19,255,013	32.36%
Net spread earned	32,345,952	20,756,076	55.84%
OTHER INCOME			-
Fee and commission income	2,963,134	3856279	-23.16%
Dividend income	91,127	108,193	-15.77%
Foreign exchange income	1,298,113	1,074,466	20.81%
(Loss) / gain on securities-net	965,629	(141,029)	-
Other income	245,734	221,978	10.70%
Total income	37,909,689	25,875,963	46.51%
			-
OTHER EXPENSES			-
Operating expenses	14,584,297	11,677,102	24.90%
Workers' Welfare Fund	464,378	344,685	34.73%
Other charges	83,686	2,155	3783.34%
Total other expenses	15,132,361	12,023,942	25.85%
	22,777,328	13,852,021	64.43%
Share of results of associates before taxation	(355,942)	(300,731)	18.36%
Profit before provisions	22,421,386	13,551,290	65.46%
Provisions and write offs -net	3,097,096	1,052,237	194.33%
Extraordinary / unusual items	-	-	-
Profit before taxation	19,324,290	12,499,053	54.61%
Taxation	7,741,200	5,495,046	40.88%
Profit after taxation	11,583,090	7,004,007	65.38%
Basic and diluted earnings per share (Rupees)	8.97	5.42	65.50%

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